Bedrock inc. is owned equally by barney rubble and his wife betty, each of whom hold 980 shares in the company. betty wants to reduce her ownership in the company, and it was decided that the company will redeem 490 of her shares for $27,800 per share on december 31 of this year. betty’s income tax basis in each share is $4,950. bedrock has current e& p of $10,550,000 and accumulated e& p of $50,680,000. a. what is the amount and character (capital gain or dividend) recognized by betty as a result of the stock redemption, assuming only the "substantially disproportionate with respect to the shareholder" test is applied?

b. given your answer to part (a), what is betty’s income tax basis in the remaining 370 shares she owns in the company?

c. assuming the company did not make any dividend distributions this year, by what amount does bedrock reduce its e& p as a result of the redemption?

The selling price of houses would be most likely to decrease if there were first a decrease in which of the following? a. new-housing construction. b. mortgage interest rates. c. the unemployment rate. d. construction workers' wages. 2b2t

Investment x offers to pay you $5,700 per year for 9 years, whereas investment y offers to pay you $8,300 per year for 5 years. if the discount rate is 6 percent, what is the present value of these cash flows? (do not round intermediate calculations and round your answers to 2 decimal places, e. g., 32.16.) present value investment x $ investment y $ if the discount rate is 16 percent, what is the present value of these cash flows? (do not round intermediate calculations and round your answers to 2 decimal places, e. g., 32.16.) present value investment x $ investment y

Vulcan flyovers offers scenic overflights of mount st. helens, the volcano in washington state that explosively erupted in 1982. data concerning the company’s operations in july appear below: vulcan flyovers operating data for the month ended july 31 actual results flexible budget planning budget flights (q) 56 56 54 revenue ($350.00q) $ 16,500 $ 19,600 $ 18,900 expenses: wages and salaries ($3,300 + $91.00q) 8,354 8,396 8,214 fuel ($31.00q) 1,904 1,736 1,674 airport fees ($870 + $35.00q) 2,730 2,830 2,760 aircraft depreciation ($11.00q) 616 616 594 office expenses ($240 + $1.00q) 464 296 294 total expense 14,068 13,874 13,536 net operating income $ 2,432 $ 5,726 $ 5,364 the company measures its activity in terms of flights. customers can buy individual tickets for overflights or hire an entire plane for an overflight at a discount. required: 1. prepare a flexible budget performance report for july that includes revenue and spending variances and activity variances.